Insurance question

[kb0zke]

I made arrangements to take our mpg 181 to our dealer for annual service, winterizing, and then leave it for consignment. I've heard that insurance won't cover it when on consignment, so we called the agent. At least for us that is true. Our agent said that the camper has to be in our custody all the time. I would assume that there is no problem leaving it alone for a while at the campground while we go sight-seeing, but what about those of you who aren't able to keep your campers at home? Does that mean that when you have it at a storage facility you aren't covered? What about when we leave it for a week at the dealer's to have service done?

I'll call the dealership again tomorrow and ask whether their insurance covers it while at their place, but I suspect that it doesn't.

What to do?

 

[MTPockets]

Take it to the dealer for winterizing, annual service, and "Winter Storage" ........ If someone buys it while it's in "Winter Storage" it's not the insurance company business.... Advise your insurance the address where it is being "Stored"....... Just have the dealer give you a receipt for the "Winter Storage" ... Should something happen while in "storage", your insurance will cover it.

 

[danemayer]

You need to pull out a copy of the actual policy and look at the section covering damage to the RV. Look at the definitions and at the exclusions - go section by section. Coverage for damage has different exclusions from some of the other sections like Medical Payments or Vacation Liability. My Geico policy excludes coverage when in possession of someone else for purposes of sale. Rented storage space is not excluded.

The general premise of the exclusion is probably that the company selling it for you should be responsible for any damages, theft, or other loss while it's in their care. Rather than set up some type of documentation to skirt the terms of the policy, you ought to get in writing from the selling company a statement accepting liability for any losses while in their possession. If they have a secure lot, I would think their insurance would cover the loss, but you need to get them on the hook in writing.

Btw, if your trailer were to be stolen from the dealer lot, or broken into, your insurance company would ask for a police report. Do you think the consignment guy is going to lie on a police report and commit insurance fraud for you if he gets asked why the trailer was on his lot?

 

[Tanuki]

I think your agent is blowing smoke! Ask him to point out where in your policy exactly does it say that. It doesn't make sense. You're supposed to drag your rig around when you go anywhere? Shopping? Take the kids to school? Out for dinner? Church? I don't think so.

I dare say that most dealers have better security (Fences, locked gates, alarms, security cameras, lights, etc.) than you do in your driveway. I would just be careful about signing away your rights to recover from the dealer for damage caused by their negligence (moving it around the lot, fires, etc.).

 

[Tumblebug]

How about a new insurance company?

 

[kb0zke]

Suggestions for another company? We're with State Farm currently.

 

[Tumblebug]

David
I did a little research, not much just a little and evidently most insurance will not cover a trailer on consignment.

 

[sgtbigb]

As a former Good Hands Agent, most policies will not cover anything on RV when on consignment!

 

[kb0zke]

So does the dealer's insurance cover it? I'm guessing they would be liable for any damage they cause, but I can see why their insurance would be reluctant to pay for damage to my trailer that a customer caused while looking. There must be some way to provide coverage, even if it means that I have to pay some extra for it. I can't believe that all of the trailers and motor homes at PPL are uninsured.

 

[Tumblebug]

The biggesty problem is wind, fire and theft. most have signs posted the the effect that they are not liable. Maybe extended coverage of some sort!

 

[jayc]

Maybe you could get a special rider policy for the time that the trailer is on the consignment lot. It might be worth it, if for no other reason than for peace of mind.

 

[kb0zke]

That's what I was thinking. PPL, down in Houston, has hundreds of consigned coaches on their lot at any one time. I can't believe that none of them are insured while there. There must be some way to have some coverage while it is there.

 

[kb0zke]

Well, I took the mpg in for winterizing and annual service today, and while I was there I talked to the owner. Since I last talked to them, he has talked to his attorney and insurance people, and they will NOT provide any coverage or accept any liability for any consigned unit. We talked about other possibilities, including getting a rider on our current policy and also switching to another company. This afternoon I checked out Progressive. Their rates are very attractive, so I called them tonight and asked specifically about coverage while on consignment. The agent went to "check" with someone else, and came back a few minutes later to say that they do NOT cover trailers while on consignment.

Monday I'll call our agent and see what can be arranged, but I'm not sure that I'll like what I hear. I'm beginning to think that this may all be a conspiracy to do away with consignments. Of course, it might just be a Missouri thing. I'll send PPL an email, too, and see what they say.

 

[jayc]

This makes no sense to me. The dealer has care, custody and control of your property, yet they are not liable? I know you can't fight city hall or a company's attorney, but it still doesn't make sense.

 

[jimtoo]

I guess my question is,,, if your trailer is not on your property or you are using it... it is not insured? If you put it in storage is it insured? What is the difference if in storage or at a dealer's lot for service or on the lot to be sold or on "consignment"?

 

[danemayer]

I guess my question is,,, if your trailer is not on your property or you are using it... it is not insured? If you put it in storage is it insured? What is the difference if in storage or at a dealer's lot for service or on the lot to be sold or on "consignment"?

Jim, the problem is that the insurance policies specifically say that they don't cover losses while on consignment. The insurance company wants the consignment company to be responsible for items in their care, but those companies don't want to be liable.

My opinion is that the consignment company should take responsibility while on their lot.


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[kb0zke]

I got more and better information today. I talked to our State Farm agent, who called Underwriting. The person she talked to this time around actually knew what she was talking about. Our mpg IS covered for damage that might happen to it while at the dealer's place. What ISN'T covered is liability (where we would damage someone else's property) since that actually comes from the tow vehicle. In other words, if a tree fell over and squashed our little mpg it would be covered. If someone stole it, it would be covered. If the thief hit someone while stealing the trailer HIS insurance would have to pay for the damage.

I also heard from the insurance people at PPL. They said that yes, consigned units can be insured, and gave me an 800 number for someone down there in Houston who would be willing to help us out. We'll check that one out later. For now, though, we're going to leave the mpg at the dealer where we bought it two years ago, and see if someone else will enjoy it as much as we have.